There was general agreement that the world economy is slowing and the UK's double dip recession means that thousands of companies and households are struggling to make ends meet.

Banks remain in a parlous state and most people who can pay back their debts are doing so. The same goes for companies.

All that argues strongly for the central bank pumping more money into the economy via QE.

But the gang of five stuck to their guns. They mention inflation and the likelihood it will stay nearer 3% than 1% over the next year. They worry that QE will push up demand so much that it increases inflation. It is the same argument used by the Tea Party in the US – without any evidence.

Inflation comes from rising commodity prices and food at the moment, not an excess of demand.

Their next argument is more plausible. The five say extra QE will be soaked up by the banks, which are still desperate to horde cash to meet regulatory rules.

The solution, according to the MPC, is for the new banking regulator, the Financial Policy Committee (FPC), to relax the rules on banks at its next meeting later this month.

It is possible that a more lenient view of bank capital will free up cash for lending just as much or even more than QE. Who knows, Barclays' boss Bob Diamond might even lend some more to small businesses?

More borrowing for investment in public networks and infrastructure, creating jobs and boosting confidence, is a key part of the answer. More borrowing? I hear you ask. Yes, more borrowing. Because when households and corporates cut up their credit cards, the government must pick up some of the slack. Osborne admitted as much in his last autumn statement when he extended the UK's payback period to 2017.

At least that was his short term answer. In the medium term he wants the consumer to come roaring back, borrowing like crazy to drive a resurgence in consumption.

Under the Treasury's plan the UK only recovers when consumer confidence returns. It's a dishonest tactic that limits government borrowing in favour of private borrowing. When the household sector is already up to its neck in debt, and the UK has the most over-leveraged property market in the world, it would be more honest and transparent if the government carried the burden on its broader shoulders.